Third Point Raises $500 Million For Reinsurer

Sep 7 2011 | 11:37am ET

Third Point founder Daniel Loeb is entering the reinsurance business, he told his hedge fund's investors in a letter.

Loeb has set up Third Point Re in Bermuda and hired John Berger as its chief investment officer. The new company will provide permanent capital for the Third Point hedge fund, Loeb wrote to investors yesterday.

The new reinsurer has already raised about $500 million from Loeb, Berger, insurance executives, and private equity firms Kelso & Co. and Pine Brook Road Partners, Bloomberg News reports. Third Point Re hopes to raise another $250 million to $500 million more.

"We believe that the combination of Third Point's longstanding exceptional asset management returns, Mr. Berger's standout underwriting track record, and a reinsurance market that may improve following multiple events in the past 12 months make it a promising time to launch Third Point Re," Loeb wrote.

Third Point sent the letter after Berger's former employer, Alterra Capital Holdings, blew the lid on Third Point Re in a regulatory filing announcing Berger's resignation to join Third Point Re. Berger was CEO of Alterra's reinsurance business. He is also the former president and founder of Chubb Re.

Third Point's entry into the reinsurance business follows that of Loeb friend David Einhorn, whose Greenlight Capital launched its own reinsurer, which invests its premiums in the hedge fund, in 2004.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

Securities and Exchange Commission Chair Mary Jo White will step down as chair of the nation’s Wall Street overseer in January, setting the stage for a potential conservative shift in the regulator’s leadership under the incoming Donald Trump administration.